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10 Best Shopify Tax Apps – [2024]
Last modified: October 20, 2024
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TaxJar Sales Tax Automation
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Exemptify
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Tax Exempt Manager
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Dual Price Display PRO
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Quaderno ‑ Taxes Automation
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Zonos Duty and Tax
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Report Pundit
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Advanced Reports
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Avalara TrustFile
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QuickBooks Online Connector
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Tax is an important part of running your business. But there can be so many different tax laws that you have to understand, calculate and pay that it can be a headache. You can hire an accountant, but the expense of handling that can be high if you sell in numerous countries and have different tax codes for each location. Therefore, you might be better off using one of the best Shopify tax apps. Before beginning, it’s worth mentioning that we are assuming you already have a sales tax permit.
What Can Shopify Tax Apps Help with?
There are numerous things that Shopify tax apps can help your business with. Firstly, they can collect sales tax for sales that are made on your store or remit sales tax if needed in some certain circumstances. This can be an important aspect as it can cost money if you don’t do this right.
However, they can also prepare and file sales tax returns in minutes. This is far quicker than you might be able to do on your own and more cost-effective than hiring an accountant or bookkeeper to do it for you.
Additionally, these apps can help you manage chargebacks effectively, ensuring that you have accurate tax records to dispute any fraudulent claims.
At the same time, most Shopify tax apps can work with numerous different tax codes or product collections. So you might have different tax rules in different states or even countries where you sell products. This can be an important aspect that the apps can sort out for you.
Best Shopify Tax Apps – Here’s Our List:
Sales Tax Calculator
A sales tax calculator is a quick tool designed to help you figure out how much sales tax is applied to a purchase, saving you time and headaches. It’s especially helpful for both customers and business owners to ensure taxes are correctly calculated during transactions.
Here’s how it works:
- Enter the purchase amount: This is the total price of the product or service before tax.
- Input the tax rate: Sales tax rates vary by location, so you’ll need to know the applicable percentage for your state, city, or country.
- The calculator does the math: It multiplies the purchase amount by the tax rate to calculate the exact amount of sales tax owed.The formula looks like this: Sales Tax = Purchase Amount x (Tax Rate / 100)
- Total cost calculation: Some calculators will also add the sales tax to the original purchase price to give you the total amount the buyer will pay.
For example, if the purchase is $100 and the sales tax rate is 7%, the sales tax would be $7. The total cost would be $107.
Sales tax calculators are crucial for businesses to charge the correct tax and stay compliant with local tax laws. They also help customers know exactly how much they’ll be paying at checkout.
Tips on Using a Sales Tax Calculator
- Use the correct tax rate: Sales tax rates vary by state, city, and even product category. Make sure you’re entering the right percentage to avoid costly mistakes.
- Check for exemptions: Some products or services might be exempt from sales tax in certain locations. Know the local laws and adjust the calculator if necessary.
- Keep it updated: Tax rates can change over time, so always use the most current rate when calculating sales tax to ensure accuracy.
- Round numbers carefully: Most sales tax calculators will round up or down to the nearest cent. Double-check the final amount to ensure you’re charging or paying the correct amount.
- Include shipping fees if necessary: In some areas, sales tax is applied to both the product and shipping costs. Enter the total amount, including shipping, if that’s the case.
- Separate tax-inclusive and tax-exclusive prices: If your price includes tax, make sure you’re using the calculator to break out the sales tax portion correctly.
- Use it for multiple jurisdictions: If you sell in multiple regions, use the calculator to manage different tax rates for different areas without getting overwhelmed.
- Track tax on discounts: If you’re running a sale or applying coupons, remember that sales tax may apply to the discounted price, not the original price. Enter the final sale amount into the calculator.
- Calculate for returns: If customers return products, make sure you calculate the correct amount of sales tax to refund as well.
- Plan for year-end reporting: Keeping track of your sales tax calculations throughout the year helps make tax reporting and filing way easier when the time comes.
Why use a sales tax calculator?
- Accuracy matters: Miscalculating sales tax can lead to overcharging customers or underpaying taxes, which can cost you money or lead to legal trouble. A sales tax calculator ensures you get it right every time.
- Save time: Instead of manually doing the math for every sale, the calculator does it instantly. You can move faster, whether at checkout or when filing taxes.
- Stay compliant: With changing tax rates and complex rules, a sales tax calculator helps you follow the laws and avoid fines or penalties for incorrect tax calculations.
- Simplifies multi-jurisdiction sales: If you’re selling in multiple locations with different tax rates, it’s a headache to calculate each one manually. A calculator takes the guesswork out of it.
- Avoid customer complaints: Charge too much tax, and customers will be quick to complain. The calculator ensures your prices are transparent and taxes are accurate.
- Easily handle discounts and promotions: When offering deals or discounts, calculating tax can get confusing. The calculator lets you quickly determine the correct tax on discounted prices.
- Ensure proper refunds: If a customer returns a product, you need to refund the correct amount of sales tax. A calculator ensures you’re not shortchanging customers or giving back too much.
- Handle shipping taxes: In many areas, tax applies to shipping fees too. The calculator helps you add that in so you’re not missing out on any owed taxes.
- Track tax on a per-item basis: Some items are taxed differently depending on category. A sales tax calculator can handle this complexity, making sure each product is taxed at the right rate.
- Prepare for tax filing: When it’s time to file taxes, having accurate records from using a calculator throughout the year helps you avoid any surprises, audits, or penalties.
Shopify’s Best Sales Tax Apps:
TaxJar Sales Tax Automation
Save hours of your tax calculations with this app. It allows you to prepare and file your sales tax return in minutes, saving you countless hours that could be spent on servicing customers or marketing your brand. All filing is automatically done by state and local tax jurisdictions, so you’re never filing in the wrong place.
The app works by collecting sales tax based on the built-in tax engine on Shopify. Therefore, it doesn’t offer a real-time calculation at the checkout. However, it will recalculate the sales tax within your TaxJar dashboard to ensure a greater detail of accuracy.
The app contains a great reporting system that can show you where and how much sales tax is costing you. You can sort data by any date range. And you can automatically file sales tax returns directly to the right authorities with just one click.
In addition, the app allows you to see what you’ve been collecting to pay for sales tax against what you should have been collecting. It will also show you what you need to pay for and by when.
TaxJar Sales Tax Automation Highlights:
- Works for all the US for the sales tax.
- Can automatically complete sales tax returns for your brand.
- See what sales tax you’ve collected and what is owed.
- Assess where the most sales tax is owed by your store.
Exemptify
There are several things that this app can offer you that you can’t normally do on Shopify without an app like this one. For one, it makes it easier for you to use tax rules by configuring prices that exclude VAT while visually adding the VAT back onto the price in the store. There is also a GEO IP database feature that allows you to display prices including/excluding VAT based on the shopper’s location. In addition, you can validate EU VAT IDs in real-time and sell free of VAT in non-EU countries.
Exemptify is a great app that is easy to install. It can display prices for both with and without VAT for the customer, or only one price. There are numerous features that ensure you’re compliant with EU VAT laws, to ensure you’re paying the right amount without overcharging the customer or being left short yourself.
The app is completely compliant with GDPR legislation, allowing you to sell in confidence. Personal data is only collected and accessed by the app on a per-request basis (i.e. to generate tax reports) from the shop database. The app does not store any information itself. If the information is deleted from the store, then the data is no longer available to Exemptify either.
Exemptify Highlights:
- Works across all the themes on the Shopify store, if you have a custom theme, and it doesn’t work, the developers will solve the problem for free.
- GDPR-compliant.
- Can show prices with and without VAT.
- Don’t charge VAT to those not in the EU.
Tax Exempt Manager
Tax Exempt Manager allows your shop to be ready for the EU laws that are very complex. For example, business customers in other EU countries can and must buy without VAT. However, this requires the customer to transmit their VAT ID and you must also have the function on your store to manage this.
However, this app helps you to do this by using an algorithm to collect and check the customer’s VAT ID using the official EU database VIES. If the entered VAT ID corresponds to the correct sample, the customer can then purchase goods off your site without VAT. This is great for wholesalers or another business that wants to bring in raw materials for their production method. The customer doesn’t need to create an account, and you don’t need to do anything else.
The app is really easy to install and configure on your website. All you need to do is to add the app to your shop and ensure it is activated. Then you just need to add the text field for VAT ID. There are full instructions for this within the app’s documentation.
The app also keeps an overview of every order made on your website that has a positive VAT ID check. Therefore, you’ve got a record to show individuals should you need to. It is easy, cost-effective and simple.
Tax Exempt Manager Highlights:
- Collect and check EU VAT IDs.
- Sell to businesses within the EU without VAT.
- Compliant with EU VAT laws.
- Easy to install and configure onto your website.
Dual Price Display PRO
If you have both business and individuals who shop on your store, then this app can help you display the right prices to the customers. You can show prices in your home page, product pages, catalogs, search results and collections with either the price for retail or the B2B prices with ease. You can also display different prices when you’re dealing with product variants. The price is automatically changed when the variant is selected.
Within the app’s configuration, you can set the tax rate as a percentage, set if base product price will be tax included or excluded. You can choose which price is displayed, or whether both can be, or even hide the price entirely if needed. Set the size ratio between both prices. To make it clear what price is being displayed, you can customize the labels for the tax included and excluded labels and the colors that the prices are shown in.
And, if for any reason, you need to turn off the functionality of the app, you can do so with just a click of a button.
Dual Price Display PRO Highlights:
- Can allow you to sell to businesses and individuals with ease.
- Display the price with or without tax.
- Customize tax labels.
- Turn off functionality of the app without uninstalling the app itself.
Quaderno ‑ Taxes Automation
This app allows you to stop learning about all the tax laws in various jurisdictions and instead concentrate on the marketing and selling of your brand by taking control of the accounting for you. The app helps you send automatic tax receipts across the world with the correct compliance to the specific tax laws that you’re sending the file too. In addition, it will work in the local language and currency for the area.
It is completely customizable, able to reflect your style and relationship with customers, and you can add the branding or personal touch to the output of your work when it comes to invoicing through the app. There doesn’t need to be any customer requests or manual invoicing. This can be done automatically and customers can access the billing history themselves, at any time. And if there are refunds, the app can send credit notes automatically to your customers.
Tax reporting is done easily. All filing work can be done within one click, whether it is EU or US tax returns. And you have all your invoices and revenues in one easy-to-use dashboard. You can also get real-time access and data about your income and tax status within the app’s dashboard that can be found within your Shopify dashboard.
Quaderno ‑ Taxes Automation Highlights:
- Automatically file tax returns for your business across multiple jurisdictions.
- Easy to use and install on your Shopify store.
- Keeps a record of all the data.
- Sends reports in the correct language and currency.
Zonos Duty and Tax
Zonos Duty and Tax is a great option for calculating and collecting the total landed cost for international orders. You don’t need any HS codes to get started. The app simply looks at the landed cost such as duty, tax, VAT, brokerage, disbursement, bond, ancillary and more information for accurate reporting and information.
The app also has a welcome mat that can say hello to all visitors in their native language, while keeping them on your website. Great for those that sell across the world. Customize can then prepare their duty and tax on your website, allowing your orders to move more swiftly through customs and reducing the number of refused packages that you send out.
At the same time, you can also have shipping rate calculations that allow you to keep your carriers well paid and not leave you out of pocket.
Zonos Duty and Tax Highlights:
- A great option for your website if it sells across the world.
- Customers can prepay their custom taxes.
- Can welcome guests in their native language.
- Easy to use.
Report Pundit
This allows you to be on top of all your shop data with ease. You can create custom reports and dashboard that allow you to manage and analyze data with ease. While you can create your own customized reports, there are 80 pre-designed reports and dashboards. If you need help creating a custom dashboard, then you can speak to the team on the live chat support, and they can create it for you for free. They’ve done this already for 8,000 Shopify merchants. They’ve also earned more than 300 five-star reviews in their first year of operations.
With the app, you can create any report from the data and then send an automated email to any accountant to help with tax returns. This is a quick, simple process that is highly efficient and helps you to manage your time better. You can collect your US Sales tax by state, county and more. You can also see tax reports by country, state, county, product, tax rate and any tax refunds.
The app also allows you to collect data from numerous source. For instance, you can connect your website with Google Analytics and Facebook to assess the full journey of your visitors.
Report Pundit Highlights:
- Collect data from numerous sources across the internet.
- See tax reports based on country and other finer details.
- Collect data for tax records and send automatically to your accountant.
- 80 pre-defined reports with the option to create other dashboards just for your brand.
Advanced Reports
This app allows you to make decisions about your brand by analyzing several financial aspects. Therefore, you can improve profits and the ROI of your business with ease. All data can be visualized with excellent reports that can be customized for your specific needs. You can use the drag and drop, filtering and sorting to build a report that is great for your brand and has all the critical information you need at your fingertips.
When you’ve created the report, you can export into Excel or Google Drive. This allows you to analyze the results further. You’re also able to track key metrics within the dashboard to analyze trends and compare them to previous periods. If you’re looking to do the reports on a set schedule, you can establish an email notification to remind you.
The app allows you to collect information about all kinds of data on your store. You can see sales by the day, time, customer, product and more. But you’re also able to see the data for tax. Tax information can be broken down into information about the tax owed per state or country. Really useful information when it comes to paying your taxes or filing a return.
Advanced Reports Highlights:
- Collect information about your tax with easy to use reports that can be exported.
- Export your data into lots of different programs, including Excel and Google Drive.
- Make important decisions about your business.
- Analyze trends and results with period comparison.
Avalara TrustFile
This app works for US businesses to allow them to sell products across states and also file sale tax automatically. This saves countless hours and time while being accurate. Therefore, you know exactly what you owe to the taxman and when.
The app works automatically, by synchronizing your sales data each period to tell you all the relevant information. The app works with all widely used shopping carts, marketplaces and accounting software. It can also accept CSV data files if you keep all your records on spreadsheets. The speed at which it can process everything and the auto-file settings ensure that you don’t have any late records, and you’re never missing a deadline.
The app can also cover you for tax-exempt sales and merchandise returns. Therefore, you never have to file amended returns to ensure you’re not paying too much. The app’s developers are also very transparent. The subscription price for the app doesn’t change with your monthly sales volume, it will stay the same.
Avalara TrustFile Highlights:
- Never miss a deadline with this app.
- Takes into account all the sales exempt from tax and merchandise returns.
- Takes in data from multiple sources for ease of management.
- Fast processing.
QuickBooks Online Connector
QuickBooks Connector is a great option for those that are using QuickBooks for all their accounting needs. It integrates perfectly with both your Shopify store and the QuickBooks software, allowing you to have an effective accounting process within your business. The app allows you to synchronize lots of different data including customers, products, orders, payments and refunds without leaving any data out.
You can manually or automatically synchronization of data.
The app also helps with tax compliance. It will set up and automatically synchronize your tax with QuickBooks Online for accurate and speedy sales tax filing. This takes hours of work normally, but can be done within just a few minutes with this app and QuickBooks.
The app is easy to use, effective and accurate. Perfect for those who are already using QuickBooks.
QuickBooks Online Connector Highlights:
- Connects your store with your QuickBooks accounts.
- Allows for accurate tax filing.
- Synchronization of all your data, from customer details to orders.
- Easy to use.
Conclusion: 10 Best Shopify Tax Apps
When it comes to business operations, it is important that you complete your tax returns on time. Using one of the best Shopify tax apps, you can ensure that your tax reports are accurate, and you’re not paying too little or too much and that you don’t miss any important deadlines. Which of these 10 Shopify tax apps will you install?
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Do these tax apps support environmental or special taxes?
Many Shopify Tax Apps are versatile enough to handle various special taxes, including environmental levies, though specific capabilities vary by app. It’s essential to explore the features and documentation of each app.
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Can Shopify Tax Apps assist with tax audits?
While Shopify Tax Apps can help with tax calculations, compliance, and reporting, they may not directly assist with tax audits. However, these apps can play a crucial role in ensuring your tax records are accurate.
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What measures do tax apps take to ensure data security and protection of sensitive financial information?
Data security is a top priority for tax apps which employ robust encryption, secure data storage practices, and compliance with industry standards to protect sensitive financial information and maintain the privacy of your data.